National Food Authority

December 15, 2017 FIRB RESOLUTION NO. 002-17 SUBJECT MATTER : National Food Authority WHEREAS, the National Food Authority (NFA) is mandated to ensure food security and grains supply in the country and stabilize their prices; WHEREAS, there is a need to stabilize the price and supply of basic food commodities, particularly rice which is the Filipino staple food; WHEREAS, to ensure adequate supply of rice in the country as well as augment the needed buffer stock requirement of the NFA, the NFA Council, per its Resolution No. 854-2017-E authorized the NFA to import 250,000 MT of rice under an Open Tender importation procurement scheme; WHEREAS, payment of its duty obligations would have an adverse impact on NFA's financial position and further exacerbate the magnitude of its loss as duties would form part of its operating expenses; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of One Billion Seven Hundred Eighty Two Million Eighty Nine Thousand Four Hundred Pesos (PhP1,782,089,400.00) only covering the duties on 250,000 MT of rice importation, broken down as follows: Supplier Quantity CIF (USD/MT) Forex Rate Total CIF Cost (in PhP) Tariff Rate Tax Expenditure Subsidy (in Billion PhP) Government of Vietnam VINAFOOD II 50,000 390.30 52 1,014,780,000 35% 355,173,000.00 OLAM International LTD 50,000 387.20 52 1,006,720,000 35% 352,352,000.00 Tan Long Grp. JSC 25,000 387.00 52 503,100,000 35% 176,085,000.00 Tan Long Grp. JSC 25,000 381.50 52 495,950,000 35% 173,582,500.00 Hiep Loi Food JSC 25,000 399.00 52 518,700,000 35% 181,545,000.00 Gia International Corporation 25,000 399.11 52 518,843,000 35% 181,595,050.00 Gia International Corporation 25,000 393.12 52 511,056,000 35% 178,869,600.00 Capitals Cereals Co. LTD 25,000 401.95 52 522,535,000 35% 182,887,250.00 TOTAL 250,000 5,091,684,000 1,782,089,400.00 Provided , that an initial Certificate of Entitlement to Subsidy (CES) shall be issued covering PhP1,451,704,387.60 only representing actual arrivals of rice importation with Statement of Accounts (SOAs) from August 2017 to October 2017. Provided further , that subsequent CES shall be issued only upon submission by the NFA to the FIRB of the required billings/SOAs pertaining to the importations, together with a certification that the volumes covered by said billings/SOAs are part of the 250,000 MT of rice importation authorized by the NFA Council for 2017. Provided furthermore , that the NFA shall submit the disposition reports on the rice importations granted tax subsidy under FIRB Resolution No. 2-17 citing in particular the areas where the concerned importations were distributed and the quantity corresponding to such distribution: Provided finally , that such availment shall be in accordance with the terms and conditions of Section 15 of Republic Act 10924 or the 2017 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Undersecretary National Economic and Development Authority (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Bureau of Internal Revenue (SGD.) ISIDRO S. LAPEA, PhD, CSEE Commissioner, Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB